In my experience, investing in stock market needs a lot of preparation. There are tons of concerns specially on budgeting and the fear of losing money. Well one of the best way to overcome this is thru education.
Here are some of the most common frequently asked questions I’ve gathered online thru forums and blogs when investing in the stock market. As Lao Tzu says, “The journey of a thousand miles begins with a single step”. Happy investing!
What is stock market?
How do I start?
What are the requirements?
What if I don’t have a billing statement in my name?
How much will I earn in the stock market?
How do I earn from the stock market?
Do I need to pay 5,000 pesos monthly?
What are recommended stocks to buy?
What if the broker got bankrupt or closed? What will happen to my stocks?
How much time do I need to when investing in stock market? Do I always need to monitor it?
What’s the difference between Equity Fund and Equity Index Fund?
What are the top 30 companies that are part of PSEi?
How do I join the Truly Rich Club?
Stock market is the place where you can invest in other people’s publicly listed companies. You can visit the Philippine Stock Exchange website to check these companies. A company sells shares of stock through an Initial Public Offering (IPO) to raise capital to grow their business.
For example, when you choose to buy stocks of San Miguel Corporation, you become part owner of the company. But do take note, even if you have thousand or even million shares of San Miguel, it doesn’t mean you will get discounts when you buy a bottle of San Miguel beer or Petron Blaze car fuel 🙂
For starters, it is highly recommended to watch all episodes of Pesos and Sense which are available in Youtube. You may use this link to watch those videos. Aya Laraya has done a great job in this show for those who are just starting out and needs more information about investing kumbaga, palakas-loob 🙂
After watching all the videos and you’ve decided to take action, you can now open an account with COL Financial, the number one stock broker in the country. You also have other options such as BPI Trade and First Metro Securities.
Just download and fill up the forms and send it to COL Financial along with 1 valid ID and a billing statement thru your preferred courier such as LBC then wait for them to contact you for your account number.
If your office is just nearby, you may also ask COL Financial to pick up the documents so you don’t need to go to their place. In case you’re in a hurry and excited, I suggest you go to their office directly so you can get your account number and fund it on the same day. All you need at this point is to wait for your confirmation and password.
No worries, any billing statement will do provided that the same address and surname (of billing owner) are specified on your application form.
There is no fixed amount and no guarantee that you will earn here right away. Sad to say, this is not a quick rich strategy. Your earnings will depend on the performance of the company you have invested in, the economy and the global markets.
There are two ways to earn here (1) dividends – either in the form of shares/stocks or cash. This is your “cut” or portion on companies’ earnings. Since you are part owner of the company you invested in you are entitled for this dividend. (2) Capital or price appreciation – over a period of time, the price of shares you bought will go up (or down). So when you buy at a low price then sell it with profit, you make money.
No. Normally 5,000 pesos is the initial deposit when you open an account. It’s up to you to add more or not.
Recommended stocks to buy information are provided by the broker like COL Financial. They have an Easy Investment Program (EIP) you can setup to automatically buy the stocks for you. You may also join Bo Sanchez’ Truly Rich Club (TRC) to get guidance and access the list of recommended stocks called SAM or Strategic Averaging Method. The fee is 497 pesos a month.
Remember, Truly Rich Club will just guide you what/when to buy/sell stocks but you’re still the one doing it.
Another option is to follow COL’s “model portfolio”. This is COL’s monthly report and is available when you logon to your COL account. You can check more details here.
When the broker got bankrupt, you will get your stocks certificate in PSE (Philippine Stock Exchange). Then you may move to another broker.
Not really. When you join the Truly Rich Club, you will need at least 15-30 minutes a month to buy or sell your stocks.
Equity funds are invested in the stock market. It’s up to the fund manager’s decision which companies to buy/sell shares or invest in whether blue chips or not which he believes the growth potential while Equity Index fund is invested in PSEi which is the top 30 companies of PSE index.
As of September 2015, PSEi is composed of the following in alphabetical order:
1. Ayala Corp. (AC)
2. Aboitiz Equity Ventures (AEV)
3. Alliance Global Group Inc. (AGI)
4. Ayala Land Inc. (ALI)
5. Aboitiz Power Corp. (AP)
6. BDO Unibank (BDO)
7. Bank of the Philippine Islands (BPI)
8. Bloomberry Resorts Corp. (BLOOM)
9. DMCI Holdings (DMC)
10. Emperador Inc. (EMP)
11. Energy Development Corp. (EDC)
12. First Gen Corp. (FGEN)
13. GT Capital Holdings (GTCAP)
14. Globe Telecom (GLO)
15. International Container Terminal Services Inc. (ICT)
16. Jollibee Foods Corp. (JFC)
17. JG Summit Holdings (JGS)
18. LT Group Inc. (LTG)
19. Manila Electric Co. (MER)
20. Metropolitan Bank & Trust Co. (MBT)
21. Megaworld Corp. (MEG)
22. Metro Pacific Investments Corp. (MPI)
23. Petron Corp. (PCOR)
24. Robinsons Land Corp. (RLC)
25. Semirara Mining Corp. (SCC)
26. SM Investments Corp. (SM)
27. San Miguel Corp. (SMC)
28. SM Prime Holdings (SMPH)
29. Philippine Long Distance Telephone Co. (TEL)
30. Universal Robina Corp. (URC)
Step 1. Click here
Step 2. Close the pop-up window by clicking the x at the top right corner of the box
Step 3. Scroll down and click “Philippine Residents”
Step 4. Enter nickname and email then click “JOIN NOW” button
Step 5. Select “No, I’ll pass up this great offer.” or if you want SuperGlod membership, you may click “Yes…”
Step 6. Select the membership type, payment system and fill out the remaining info on the form. Don’t choose credit card if you don’t have one otherwise select it, your card will be billed monthly (497 php/month).
Step 7. Click continue
Step 8. Get the details (required below) and pay the membership fee (6 months – 10% discount, 12 months – 20% discount)
Step 9. Send the scanned copy of your bank deposit slip to firstname.lastname@example.org and wait for the confirmation from the team. Include the information below on your email:
Your full name
Date you deposited
Amount you deposited
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